AMT Book Defaults

The system automatically displays the defaults for the AMT book based on the Tax book entries according to Alternative Minimum Tax rules.

The table below displays the AMT defaults that are appropriate for assets placed in service before 1999. The Taxpayer Relief Act of 1997 made changes to the AMT Depreciation Adjustment for assets placed in service after December 31, 1998. See AMT Depreciation Adjustment After 1998 for more information.

Business-Use Percentages and Their Effective Dates

For these fields, if the Tax book and the AMT book have the same fiscal year end and short years, the system copies the entries in the Tax book to the AMT book as the defaults. If not, the business-use percentage defaults to 100%.

Section 179 or Bonus

The system copies the Section 179 or bonus field entries from the Tax book.

Depreciation Method, Rate, and Estimated Life

The system sets the defaults for these fields as shown in the following table for assets placed in service before 1999. For more information, see Depreciation Methods and Estimated Life and ADS Life .

AMT Book Defaults for assets placed in service before 1999
Asset Property Type	Tax Book Depreciation Method (Rate)	AMT Book Depreciation Method (Rate)	AMT Book Estimated Life
Personal (P, Q) luxury auto (A), and amortizable assets (Z) placed in service after 1986	AT ST SA MF (200%) MT (200%) MF (150%) MT (150%) AD	AT ST SA MF (150%) MF (150%) MF (150%) MF (150%) AD	Tax book Tax book Tax book ADS life (if any) ADS life (if any) Tax book Tax book Tax book
Personal (P, Q) luxury auto (A), and amortizable assets (Z) placed in service after 1987	Any method other than NO NO	Tax book NO	Tax book Tax book
Real property (R, S, C, E, F)	AT, ST DB, DC, YS DH, DI, YH DD, DE, YD MF, MT, AD All other methods	ST SL SH SD AD Tax book	Tax book Tax book Tax book Tax book 40 years Tax book
Vintage accounts (V)	All methods	Tax book	Tax book